The ‘misery factor’ – college costs are taking a bigger bite out of family income

by Grace

Although most families are not paying the full cost of college when discounts from grants and scholarships are figured in, even the net cost of college is producing a high “misery factor” when considered as a percentage of household income.

The net cost after grants and scholarships paid by the typical middle-income family is about 70% of the gross college cost. On average, lower-income families are paying an even lower net cost. But with average college costs rising and household income falling, the strain on finances continues to grow for most families.